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Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result, market research and competitive pressures influence the determination of their selling price. Their marketing department has done a comprehensive analysis and It looks like a price of $79 would be appropriate given the present business environment. The company has a goal of earning $27 on each unit. What is the target unit cost of each hair dryer

Respuesta :

Answer:

$106

Explanation:

Data provided as per the question below:-

Market price = $79

Earning per unit = $27

The computation of target unit cost of each hair dryer is shown below:-

Target unit cost = Market price + Earning per unit

= $79 + $27

= $106

Therefore, for computing the target unit cost of each hair dryer we simply add the market price with earning per unit.

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